Impacts of the global minimum tax on corporate income tax policy: Theoretical foundations and policy implications for Viet Nam

DUONG DUC THANG

MA, Academy of Finance; Email: [email protected]

NGUYEN THE DUY

CQ62/15.02, Academy of Finance

Abstract

In the context of globalization and the increasing prevalence of base erosion and profit shifting (BEPS), the Global Minimum Tax (GMT) has emerged as a major reform in the international tax system. The implementation of GMT not only aims to ensure a minimum effective tax rate for multinational enterprises but also fundamentally reshapes the design of corporate income tax (CIT) policies across countries. This study analyzes the theoretical foundations of CIT policy and the GMT, and examines the key channels through which GMT affects CIT policy, including its impacts on tax rates and tax competition, the effectiveness of tax incentives, the tax base and national taxing rights, as well as corporate behavior and tax administration requirements. The findings suggest that GMT significantly reduces the effectiveness of traditional profit-based tax incentives and shifts competition from tax-based to non-tax factors. Based on this analysis, the study proposes several policy implications for Viet Nam, including implementing a qualified domestic minimum top-up tax, restructuring tax incentives, adopting alternative investment support measures, and strengthening tax administration capacity amid deeper international integration.

Keywords: Corporate income tax, global minimum tax, tax policy, tax incentives, Viet Nam

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 3, June 2026)

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